sheathed electrical cable in Schedule 40?

As I was moving old Schedule 40 conduit in my garage to get ready for a rewire, I found some had sheathed electrical cable running through them. Should I be concerned that sheathed electrical cable was used?

In my area sheathed electrical cable is not exceptable in conduit, and the reason the inspectors will give is that thier is not a proper way to connect a sheathed electrical cable cable coming out of a conduit into a junction box, a sheathed electrical cable cable requires a clamping connector approved for use on sheathed electrical cable, a conduit connector will let the sheathed electrical cable dangle loosley. however, if you are only protecting a short run where sheathed electrical cable is exposed to damage and not going into a junction box, it would probley pass if you put connectors with bushings on the end of the conduit to protect the jacket against the sharp edge of the end of the conduit....